GBP/USD Technical Analysis September 15, 2011

The GBP/USD fell during the session on Wednesday, and broke the fresh lows again. However, during the latter hours of the session, we saw optimism reenter the market as three EU heads of state had a conference call to reiterate that Greece is staying in the EU. Because of this, the “risk on, risk off” trade is the only one the markets are doing. The GBP/USD pair is very sensitive to this, and as such formed a hammer for the day. However, the 1.60 level recent saw massive resistance in the form of two hammers, and as such – we expect any break to the upside to be capped near that level.